The Research On Optimizing Fiscal And Tax Incentive Policy

Third Plenary Session of the Party's eighth proposed the overall deepening reform as a comprehensive deployment, and explain the importance and necessity to speed up the construction of a modern financial system from the height of national governance. This provides a new theoretical research proposition on fiscal and taxation. The role of the modern financial system of governance in the country to play depends on each individual should have made spending effectiveness and each tax policy can be put in place and to play its role. It can be said that fiscal spending, tax policy is a fiscal system "capillary." The financial subsidies, tax incentives and other financial incentives is precisely the important part of these "capillaries". However, in recent years, financial subsidies, tax incentives are cheated by market players, and the policy was abused by the local government is also getting worse. As time goes on, the "capillaries" problem will gradually erode the modern financial system, thereby affecting the ability of national governance. Because of this, the Third Plenary Session of the Party's eighteen proposed the requirement of two key points:"phasing out the special subsidies and local matching funds in the competitive, and strictly control the boot, relief and emergency types of special subsides," and "According to the principle of unified tax, fair tax, and fair competition, it should strengthen the tax incentives in particular regional tax incentives specification management. Tax incentives should be unified by a dedicated tax laws and regulations, and gradually clear and specificity."The principle of theoretical research must serve the practical work determines the research work should always in front of the practice. As the same to the theoretical study of fiscal and tax. Born in the20th century, and under the background of the Great Depression of the1930s, the Keynesian macroeconomics is mainly focused on how to use fiscal policy to smooth economic fluctuations at the beginning of its birth.Since then, under the impetus of the economy and society, and in pursuit to the new progress of Keynesian macroeconomic based on the macroeconomic policies, the macroeconomic policy analysis seeks to explore and use closer economic realities of the New Keynesian model to discuss the framework of fiscal policy and its effects transmission mechanism. As mentioned in the literature review in this article, the research on tax incentives stems from the Keynesian government intervention, which tracks the performance of research, first studied on the fiscal policies'(or fiscal spending or government expenditure) impact on economic growth and industrial development, and then on the basis of this to study the financial subsidies, tax incentives and other financial incentives. Especially to today, more and more research explored the use of more realistic approach and closer economic data to analyze the effects of fiscal policy. It is highly fitted with the current financial subsidies, tax incentives and other financial systems as "capillaries", which also followed the principles of theoretical studies.According to the existing literature and practical needs, this paper focused on "Optimization of Fiscal and Tax Incentives—Based on the Economic effects of the Strategic Emerging Industries' Listed Companies", financial subsidies, tax incentives and other incentive effects of tax incentives for market players to make the micro-empirical analysis, and strive to find new research methods and data closer to economic reality in the theoretical study. It is also the practice's needs. The transformation of economic development, and promoting the optimization and upgrading of industrial structure, are the two fundamental tasks to realize China's economic transformation, and to build the Chinese "upgrade type" economy. Among them, the strategic emerging industries, which based on the major technological breakthroughs and significant development needs played a significant role in the leading drive. Therefore, China has introduced a series policies to support the development of strategic emerging industries. However, the current problems of tax incentives has limited its effect in the development of strategic emerging industries. Through this study, it can be objectively analyze the current fiscal and tax incentives effect of strategic emerging industry, and provide a basis for decision-making to optimize strategic emerging industries.This paper included six chapters, each chapter of the main research contents are as follows: the part of introduction mainly proposed the background, significance, literature review, research methods, techniques and research methods, the research framework and main research content, and lack points of the paper. The part of "Theoretical analysis of fiscal and tax incentives" mainly explain the theoretical basis of the implementation of fiscal and tax incentives from the public finance theory and industrial development theory, and analyzed the fiscal and tax incentive mechanism. The part of "Strategic emerging industries and tax incentives" first elaborated the importance of strategic emerging industries under the context of economic restructuring. Second, the paper systematically reviews China's current fiscal and tax incentives, and analyzed these policies. The part of "Empirical analysis of economic effects of fiscal and tax incentives" firstly explain the theoretical model of fiscal and tax incentives'economic effect. According to this, the paper based on the data of listed companies of the strategic emerging industries, constructing multiple linear regression models to test the fiscal and tax incentives effect, the differences of effect between the fiscal subsidies and tax incentives policies, and also test the intensity of fiscal subsidies and tax incentives and the relationship to its economic effects. The part of "Comparative Study of tax incentives" mainly compared some developed countries and emerging market countries' fiscal and tax incentives from the industrial development perspective. The part of "proposal to optimize the fiscal and tax incentives" mainly from the principle, reform direction and specific recommendations to conclude several proposal on how to optimize the fiscal and tax incentives. Firstly, systematically sort out the current fiscal and tax incentives of the strategic emerging industry. Some scholars question about the excessive of fiscal and tax incentives, and this is also the background to regulate and clean up fiscal and tax incentives. However, due to the fiscal and tax incentives often introduced in the form of departmental documents, and has a certain contingency and randomness. Therefore, it is difficult to figure out how many fiscal and tax incentives there are currently, which make it also difficult to regulate and clean up fiscal and tax incentive policy. This paper deeply analyzed this question, on one hand, sorting the current fiscal and tax incentive policy as a whole, on the other hand, sorting the current policies by industries, these studies make foundation to analyze the economic effect of fiscal and tax incentives, and proposed the suggestions to optimize the fiscal and tax incentive policies. Second, the paper not only analyzed the fiscal and tax incentives from the theory of public finance and industrial development, and explain the impact mechanism. Based on endogenous growth theory, the paper from the research framework and human capital framework elaborated on the analysis of theoretical models tax incentives policy, laid the foundation for the empirical analysis. Third, the paper used micro-enterprise data, tested the fiscal subsidies and tax incentives policies'economic effect, and the difference effect of different industries as well as different effect of the same industry with different kinds of policies. The paper draw the effect of fiscal subsidies and tax incentives policies also significant and different. Base on this, it proposed suggestions on how to optimize the fiscal and tax incentive policies. Forth, the innovation of research data. This paper based on the listed companies of strategic emerging industries. Although the data is publicly, and many scholars had been studied, the paper improved some variables and research data to test the effect of fiscal and tax incentive policies. This data needed to be collected manually from the annual report of the listed companies, and it also needs to be calculated. These data will be the unique manual data pf this paper, it can help to test the incentive effect more accurately.